“The sharp rise in US payrolls data has led to expectations of a prolonged high interest rate environment, leading to a surge in US yields and heightened volatility in global equities. Market participants expect key data points such as domestic and US inflation numbers for more details. Given the high market valuation, profit booking is visible in the upper range of the rally,” he added .
That said, here’s a look at what some key indicators suggest for Monday’s action:
Wall Street Show
Wall Street stocks fell on Friday following data that showed slowing U.S. hiring but was seen as keeping the Federal Reserve on track to raise interest rates.
The world’s largest economy added 209,000 jobs last month, fewer than expected, but the unemployment rate fell slightly to 3.6%, remaining near historic lows. The Dow Jones Industrial Average ended down 0.6% at 33,734.88. The broad-based S&P 500 fell 0.3% to 4,398.95, while the tech-heavy Nasdaq Composite Index fell 0.1% to 13,660.72.
European stocks fell slightly on Friday, after steep losses in the previous session, after US data showed a still-strong labor market, as investors await a key US jobs report due later in the day. for more clues on the outlook for interest rates.
The pan-European STOXX 600 index fell 0.4% at 0710 GMT, forecast for its worst week since mid-March, led by falling utility stocks, which slid 1.2%. The UK’s FTSE 100 index also fell 0.6%.
Tech View: Long Bear Candle
A long bearish candle has formed on the daily chart with a long upper shadow. Technically, this pattern indicates rejection of bulls at new highs. This could also be seen as a near-term upper reversal pattern. The positive chart pattern, such as higher highs and higher lows, is intact according to the daily chart and the current market weakness could be seen as a higher upper reversal of the pattern. Additional weakness should find a base for a higher background formation. “Immediate supports like the rising resistance line as per the change in polarity and the daily 10-period EMA are placed around the 19200 levels, which could be immediate cluster support for the market in the event of further weakness ahead. Any upside bounce from here could encounter a significant hurdle at the 19425 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Stocks Showing a Bullish Bias
The Momentum Moving Average Convergence Divergence (MACD) indicator showed a bullish trade on the counters of Tata Power, Shree Renuka SugarsVedanta, Jain irrigationAnd Minda Corporation among others. The MACD is known to signal trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see upward movement and vice versa.
Stocks Signal Weakness Ahead
The MACD showed bearish signs on the REC counters, HCL Technologies, united mindsand Godrej Consumer among others.
A bearish crossover on the MACD on these counters indicated that they had just begun their downward journey.
Most active stocks by value
Olectra Greentech (Rs 1986 crore), HDFC Bank (Rs 1657 crore), RIL (Rs 1633 crore), Bharti Airtel (Rs 1629 crore) and Tata Motors (Rs 1279 crore) were among the most active stocks on NSE by value. Higher activity on a counter in terms of value can help identify counters with the highest turnover for the day.
Most active stocks by volume
Suzlon Energy (Shares traded: 26.75 crores), power of trust (Shares traded: 14.57 crore), YES Bank (Shares traded: 24.82 crore), PNB (Shares traded: 10.13 crore) and Bank of Maharashtra (Traded shares: 5.89 crore) among the most traded stocks during the session on NSE.
Shares showing buying interest
Shares of Olectra Greentech, Kalyan Jewelers, Ion exchange, Mishra Dhatu Nigamand Tata Motors (DVR), among others, witnessed strong buying interest from market participants as they hit new 52-week highs, signaling bullish sentiment.
Stocks are under selling pressure
Shares of Aarti Industries, Viji Finance, Polyline KshitijIndia’s Dangee Dums and Cell Point, among others, hit 52-week lows, signaling bearish sentiment on the meters.
Sentiment meter favors bears
Overall, the breadth of the market favored the bears as 1,413 stocks ended in the green, while 2,050 names settled in the red.(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)